The stock was doing okay, up until the negative Nellies from CLSA had to issue their Debbie Downer of a note — basically calling for catastrophe.
Apple is suing Qualcomm for a billion dollars — claiming they ripped the off in South Korea. Not a big deal, right?
Surprise! Wrong.
CLSA:
“While the merits of AAPL’s suit are unclear, the very fact that AAPL chose this path, and the enormous risk to QCOM’s business model that it presents, is too much to ignore. AAPL’s reputation as a fierce litigator means this isn’t likely to be resolved quickly, and since AAPL represents about 25% of QCOM’s licensing revenue, AAPL has a lot of leverage in the meantime. We continue to believe QCOM is attractively valued assuming its licensing model remains unscathed, but we feel that we will be able to reassess our view once this issue is fully resolved.”
And on that news, shares of $QCOM have been McClown-raped.
Here are some other meaningless comments from our analyst community.
fuck!
$AAPL should’ve known better than to set up shop in and transfer intellectual property to Asia. They wanted it both ways – cheap labor and yuuge profits. Well, guess what…
this will most certainly affect the seasonality of QCOM.